Method and system for displaying and trading spreads

ABSTRACT

A trading application can receive price and quantity information for tradeable objects. The trading application can compute implied price and quantity information for spreads of the tradeable objects. Direct and indirect price and quantity information for the spreads can be displayed in a manner that shows the relationship with each other and with the price and quantity information for the tradeable objects.

CROSS REFERENCE TO RELATED APPLICATION

This application is a continuation of U.S. patent application Ser. No.13/348,401, filed Jan. 11, 2012, now U.S. Pat. No. 8,447,685, entitled“Method and System for Displaying and Trading Spreads, which is acontinuation of U.S. patent application Ser. No. 12/431,282, filed Apr.28, 2009, now U.S. Pat. No. 8,131,629, entitled “Method and System forDisplaying and Trading Spreads,” which is a continuation of U.S. patentapplication Ser. No. 11/417,912, filed May 3, 2006, now U.S. Pat. No.7,542,941, entitled “Method and System for Displaying and TradingSpreads,” which is a continuation of U.S. patent application Ser. No.10/229,986, filed Aug. 28, 2002, now U.S. Pat. No. 7,542,937, entitled“Method and System for Displaying and Trading Spreads,” the contents ofwhich are fully incorporated herein by reference.

FIELD OF THE INVENTION

The present invention relates generally to the electronic trading. Morespecifically, it relates to a method for processing trading information.

BACKGROUND OF THE INVENTION

Many exchanges throughout the world now support electronic trading.Electronic trading has made it possible for an increasing number ofpeople to actively participate in a market at any given time. Theincrease in the number of potential market participants hasadvantageously led to, among other things, a more competitive market andgreater liquidity.

Exchanges that support electronic trading are generally based on a host,one or more computer networks, and clients. In general, the hostincludes one or more centralized computers to form the electronic heart.Its operations typically include order matching, maintaining order booksand positions, price information, and managing and updating a databasethat records such information. The host is also equipped with anexternal interface that maintains uninterrupted contact to the clientsand possibly other trading-related systems.

Typically, market participants link to the host through one or morenetworks. A network is a group of two or more computers linked together.There are many types of networks such as local area networks and widearea networks. Networks can also be characterized by topology, protocol,and architecture. However, any type of network configuration can be usedin electronic trading. For example, some market participants may link tothe host through a direct connection such as a T1 line or an IntegratedDigital Services Network (“ISDN”) connection. Some participants may linkto the exchange through direct connections, which can use common networkcomponents such as high-speed servers, routers, and gateways, and so on.

Regardless of the way in which a connection is established, softwarerunning on the clients allows people to log onto one or more exchangesand participate in one or more markets. Some clients run software thatcreates specialized interactive trading screens. In general, the tradingscreens enable people to enter orders into the market, obtain marketquotes, and monitor positions. The range and quality of featuresavailable varies according to the specific software.

The trading screens enable the traders to enter and execute orders,obtain market quotes, and monitor positions while implementing varioustrading strategies including those previously used on the floor of anexchange. Such strategies incorporated into an electronic marketplacecan improve the speed, accuracy, and ultimately the profitability oftrading electronically. One such trading strategy is spread trading.

Spread trading is the buying and/or selling of two or more tradeableobjects, the purpose of which is to capitalize on changes or movementsin the relationships between the tradeable objects. A spread trade couldinvolve buying two or more tradeable objects, buying and selling two ormore tradeable objects, selling two or more tradeable objects or somecombination thereof. Often, the tradeable objects being spread arecontracts for different delivery months (e.g., expiration dates) of thesame tradeable object or contracts of the same tradeable object atdifferent strike prices, but sometimes involve different tradeableobjects or the same tradeable object on different exchanges.

Spread trading is usually less risky than other types of tradingstrategies such as position trades. In spread trading, a position isprotected by taking an offsetting position in a related product, therebypotentially reducing the risk of adverse price movements. For example, atrader might simultaneously buy and sell two options of the same classat different strike prices and/or expiration dates. Of course, there aremany other reasons for spread trading, and there are many knownvarieties of spread trading techniques.

With the advent of electronic trading, trading strategies such as spreadtrading can be incorporated into the electronic marketplace. However,the success of a trader who trades in a competitive electronic tradingenvironment may depend on many factors. Among those factors includespeed, such as the speed in calculating what tradeable objects to quote,the speed in calculating what price to quote at, and the speed incalculating how much to quote. Because speed is of great importance, itis desirable for electronic trading systems to offer tools that canassist a trader in trading in an electronic marketplace, and help thetrader to make trades at the most favorable prices in a speedy andaccurate manner.

In the following detailed description, a trading application and tradinginterface for electronic spread trading are described. These toolsprovide advantages, as described below, to a trader in an electronictrading environment.

BRIEF DESCRIPTION OF THE DRAWINGS

The presently preferred embodiments of the present invention aredescribed herein with reference to the drawings, in which:

FIG. 1 is a flowchart of a preferred process used to configure a tradingscreen;

FIG. 2A is a screenshot of a preferred format for displaying spreads ina trading screen;

FIG. 2B is a screenshot of the trading screen of FIG. 2A displayingmultiple condor spreads;

FIG. 2C is a screenshot of an alternate format for displaying spreads ina trading screen that displays only pricing information;

FIG. 2D is a screen shot of an alternate format for displaying spreads atrading screen that displays ask and bid prices in adjacent columns;

FIG. 2E is a screenshot of an alternate format for displaying spreads ina trading screen that display ask information and bid information inadjacent columns;

FIG. 2F is a screenshot of an alternate format for displaying spreads ina trading screen that supports click trading;

FIG. 3 is a flowchart of a preferred process to calculate and displayimplied prices and quantities for a spread;

FIG. 4 is a flowchart of a preferred process to switch from displayingdirect price and quantity information for a spread to displaying impliedprice and quantity information for the spread;

FIG. 5 is a flowchart of a preferred process to switch from displayingimplied price and quantity information for a spread to displaying directprice and quantity information for the spread; and

FIG. 6 is a flowchart of a preferred process to responsively switchbetween displaying the direct and implied markets for a spread based onthe prices in each market.

DETAILED DESCRIPTION OF THE PRESENTLY PREFERRED EMBODIMENTS

I. General Overview of Spreads

Generally, a “spread” is the purchase or sale of one or more tradeableobjects and an associated purchase or sale of one or more tradeableobjects. A tradeable object can be any object, such as stocks, options,bonds, futures, currency, warrants, funds, or other financial objects.Other objects, for example, grains, energy and metals can also betraded. Of course, these list are not exhaustive, and any other objectfor which there exists a market can be traded. Tradeable objects can be“real,” such as products that are listed by an exchange for trading, orthey can by “synthetic,” such as a combination of real products that iscreated by a trader.

A tradeable object is generally associated with a time period. The timeperiod can correspond to a future expiration date for the tradeableobject. The tradeable object could be, for example, a contract to buy orsell a specific quantity of the tradeable object at a time in thefuture. For instance, a tradeable object could be a February corncontract, which would be a contract to buy or sell a specified quantityof corn at a date in February. Within any month, the expiration date ofthe contract is typically set by the market, but the particular contractmay alternatively specify any date.

The time periods for the tradeable object can be any of a variety ofdifferent time periods, such as days, weeks, months, years or other timeperiods, and the preferred embodiments are not limited to tradingobjects maturing over any particular time period. Of course, a tradeableobject can also be associated with a strike price instead of a timeperiod.

In spread trading, the tradeable objects generally, but not always, havea corresponding price relation. According to the relation, an increasein the price of a first tradeable object will generally be offset by adecrease in the price of a second tradeable object. Similarly, adecrease in the price of the first tradeable object will generallycoincide with an increase in the price of the second object. While thisinverse price relationship can limit the upside of a spread, it can alsolimit the downside of a spread because prices of related objects tend tomove in the same direction. Thus, a spread can reduce the downside riskfor a trader.

While a spread can involve two tradeable object “legs,” it mayalternatively include more than two legs. Two popular types of multi-legspreads are butterflies and condors. A butterfly generally refers to athree-leg option spread, and a condor generally refers to a four-legoption spread. It should be understood, however, that the principlesdiscussed with respect to butterflies and condors are not limited tooptions trading but may be extended to any tradeable object.Additionally, they are not confined to butterflies and condors, but maybe extended to any multi-leg spread.

Buying a butterfly includes buying one front month, selling two middlemonths and buying one far month. Selling a butterfly includes sellingone front month, buying two middle months and selling one far month. Inthe butterfly, the two middle months are the same, so the butterfly is athree-leg spread. As one example, a butterfly can include buying oneJanuary corn contract, selling two February corn contracts, and buyingone March corn contract. Of course, a butterfly is not limited to corncontracts but rather may involve any tradeable object. Additionally,other time periods or strike prices can be used. It is also notnecessary that the three time periods, such as months, be consecutive.For example, buying a butterfly might include buying a January contract,selling two September contracts, and buying one January contract of thefollowing year.

Buying a condor is commonly executed as buying one front month, sellingtwo middle months and buying one far month. Selling a condor is executedas selling one front month, buying two middle months and selling one farmonth. In contrast to the butterfly, the two middle months in the condorare not the same. Thus, the condor is a four-leg spread. Buying a condorcould be, for example, buying one January corn contract, selling oneFebruary corn contract, selling one March corn contract, and buying oneApril corn contract. As with the butterfly, other tradeable objects andtime periods (or strike prices) can be used, and it is not necessarythat the time periods be consecutive.

While butterflies and condors can each be formed from outright tradeableobjects, they can alternatively be formed from a combination of twodifferent two-leg spreads. As previously described, the butterfly iscommonly implemented as buying or selling a front month, selling orbuying two middle months and buying or selling a far month. Usingtwo-leg spreads, the butterfly is a combination of a first spread and asecond spread. The first spread has the front and middle months as itslegs, and the second spread has the middle and far months as its legs.Then, buying a butterfly includes the combination of buying the firstspread (i.e., buying the front month and selling the middle month) andselling the second spread (i.e., selling the middle month and buying thefar month). Selling a butterfly includes the combination of selling thefirst spread and buying the second spread.

Similarly, the condor can be formed from a combination of a first spreadand a second spread, which are both two-leg spreads. The condor isimplemented as buying or selling a front month, selling or buying twodifferent middle months, and buying or selling a far month. Thus, thefirst spread uses the front month and a first middle month as its legs,and the second spread uses a different middle month and a far month asits legs. Then, buying a condor includes the combination of buying thefirst spread (i.e., buying the front month and selling a first middlemonth) and selling the second spread (i.e., selling a second middlemonth and buying the far month). Selling a condor includes selling thefirst spread and buying the second spread.

II. Displaying Spread Information

A trader can use electronic trading software to interface with one ormore exchanges. The trading software can interface with an exchangethrough a variety of different links, such as over the Internet orthrough a direct connection with the exchange. Once connected to theexchange, the trading software can receive a stream of information fromthe exchange. A method and system for using trading software tointerface with an exchange is described in U.S. patent application Ser.No. 09/590,692, filed Jun. 9, 2000, entitled “Click Based Trading withIntuitive Grid Display of Market,” and is also described in U.S. patentapplication Ser. No. 09/589,751, filed Jun. 9, 2000, entitled “ClickedBased Trading with Market Depth Display.” Both applications are commonlyassigned to Trading Technologies International, Inc., and the contentsof both applications are incorporated herein by reference. Moreover, thetrading application may implement tools for trading tradeable objectsthat are described in a U.S. patent application Ser. No. 10/125,894filed on Apr. 19, 2002, entitled “Trading Tools for Electronic Trading,”the contents of which are incorporated herein by reference.

For example, the trading software can receive a list of tradeableobjects traded on the exchange. Additionally, the trading software canreceive market information for each tradeable object, such as bidprices, bid quantities, ask prices, ask quantities, and additionally,some exchanges provides amounts and quantities of past sales, and othermarket related information. The information can be continually providedto the trading software, which can allow the trading software tocontinually update its trading screen with current market information.

Once the trading software receives this information from the exchange,the trading software can format and display the information. In additionto displaying the outright trading information for a tradeable object,the trading software can compute and display various spreads. The outputconfiguration of the trading software can, of course, be predetermined.However, a user of the trading software can specify configurationinformation, and this can be used to reconfigure the trading screen.

FIG. 1 is a flowchart of a preferred process used to configure a tradingwindow, such as one that can be used to display multi-leg spreads. AtStep 50, a user selects one or more tradeable objects to display on thetrading screen. The user can select any of the available tradeableobjects traded on the exchange. As previously described, a tradeableobject selected by the user can have associated with it a time period ora strike price. The time periods or strike prices can be used incomputing and displaying spreads from the selected tradeable object.Various different time periods, such as days, weeks, months, years orothers, can be used. Strike prices such as tradeable objects with thelowest strike price, next highest strike price, the highest strikeprice, and so on may be used.

Then, at Step 52, the user can select one or more spreads to bedisplayed for the tradeable objects. Optionally, the trading softwaremay be configured to automatically compute one or more spreads for theselected tradeable objects without the user making a selection. Forexample, the trading software may automatically compute two-leg,butterfly and condor spreads for the user's tradeable object selection.Of course, if the user only selected two or three tradeable objects,then the software may then only compute the two-leg or butterflyspreads. Also, if the exchange doesn't already support direct trading ofone or more of the spreads, the trading software may automaticallyestablish that spread on the exchange. This can be done with anexchange, such as LIFFE, which allows a trader to establish and thentrade a new spread on the exchange. Alternatively, the trader maymanually select one or more of the spreads to be established on theexchange. This may be done, for example, by “clicking” or otherwiseselecting one of the spreads that is not currently directly traded onthe exchange.

FIG. 2A is a screenshot of a preferred format for displaying spreads andmarket-related information in a trading screen. The trading screenprovides a unique way in displaying the different types of spreads(e.g., calendar, butterfly, and condor) and outright legs so that atrader can quickly identify the relationship between the various spreadsand outright legs.

The trading screen as depicted in FIG. 2 uses five columns, however,alternate embodiments can use a greater or fewer number of columns. Thefirst column is a Contract column 100. This column represents theselected tradeable object by displaying an identifier for the tradeableobject. As shown in FIG. 2, the Contract column 100 displays the timeperiods for the tradeable objects. Alternatively, it could displaystrike prices or other identifiers for the tradeable objects. In FIG. 2,the Contract column 100 displays identifiers for four contracts;however, a may display identifiers for a fewer or greater number oftradeable objects, and it can display identifiers for tradeable objectsother than contracts. As shown in FIG. 2, the Contract column 100includes March 2001, June 2001, September 2001 and December 2001expiration dates. Of course, the actual time periods displayed willdepend on the user's selections. It should also be understood that moreor fewer months may be displayed for the selected contract. For example,instead of displaying only four months as shown in the figure, fivemonths, six months, or more may be displayed in the trading screen. Inone alternate embodiment, the identifiers may be color-coded, forexample, based on the expiration date of the contract or other tradeableobject.

The second column is an Outright column. The Outright column displaysindividual legs for the tradeable object. The Outright column includestwo sub-columns: an Outright Price column 102 and an Outright Quantitycolumn 104. The Outright Price column 102 holds the bid and ask pricesfor the tradeable object for each month. In one embodiment, the bid andask prices represent the inside market, that is, the highest bid pricewith quantity and the lowest ask price with quantity. Similarly, theOutright Quantity column 104 holds the available quantities for thevarious bid and ask prices.

The third column is a Calendar column, which displays two-leg spreadinformation for the tradeable object. The Calendar column furthercomprises two sub-columns, a Calendar Price column 106 and a CalendarQuantity column 108. The Calendar Price column 106 displays the bid andask prices for the various spreads, and the Calendar Quantity column 108displays the available quantities corresponding to the bid and askprices of the spreads.

As shown in FIG. 2A, the Contract column 100 includes four months. TheCalendar column computes three different two-leg spreads for the fourmonths. It includes a Mar. 01/Jun. 01 spread, a Jun. 01/Sep. 01 spread,and a Sep. 01/Dec. 01 spread. The price and quantity information forthese spreads is displayed in the Calendar Price column 106 and theCalendar Quantity column 108.

The Calendar column vertically centers the price and quantityinformation for each spread between the rows for the spread'scorresponding months. Thus, the price and quantity information for theMar. 01/Jun. 01 spread is vertically centered between the Mar. 01 andJun. 01 rows. Similarly, the price and quantity information for the Jun.01/Sep. 01 spread is vertically centered between the Jun. 01 and Sep. 01rows, and the price and quantity information for the Sep. 01/Dec. 01spread is vertically centered between the Sep. 01 and Dec. 01 rows.

The vertical centering of the Calendar column provides a visual displayof the spread information that can be easily correlated to the monthsthat comprise the spread. This display can allow a trader to easily viewthe outright information for the months and also the spreadscorresponding to the months.

In addition to displaying two-leg spreads, the trading screen alsodisplays butterfly spreads. The Butterfly column displays three-legbutterfly spreads for the four months. A Butterfly Price column 110displays the bid and ask prices for the butterflies, and a ButterflyQuantity column 112 display the available quantities corresponding tothe bid and ask prices. As shown in FIG. 2A, the Butterfly columndisplays three three-leg spreads.

The first butterfly includes the months of March, June and September.Thus, the front month is March 2001, the middle month is June 2001, andthe far month is September 2001. The bid and ask price information isdisplayed for this spread, and the corresponding quantity information isalso displayed. The second butterfly includes the months of June,September and December. For the second butterfly, June 2001 is the frontmonth, September 2001 is the middle month, and December 2001 is the farmonth. As with the first butterfly, the bid and ask prices and theirrespective quantities are displayed.

The Butterfly columns are vertically centered between the rows thatcomprise each butterfly. The price and quantity information for thefirst butterfly is vertically centered between the Mar. 01, Jun. 01 andSep. 01 rows. Similarly, the price and quantity information for thesecond butterfly is centered between the Jun. 01, Sep. 01 and Dec. 01rows. This arrangement allows a trader to view the outright informationfor the selected months along with the two-leg and butterfly spreads.The spreads can be quickly correlated to their months.

As previously described, the butterfly can be a combination of twodifferent two-leg spreads. In addition to displaying the butterfly inalignment with its individual legs, the format depicted in FIG. 2 alsodisplays the butterfly adjacent to the two-legs spreads that form thebutterfly. For example, the first butterfly includes March 2001, June2001 and September 2001 legs. Thus, it can also be formed from acombination of the Mar/Jun and Jun/Sep two-leg spreads. As shown in FIG.2, the Mar/Jun/Sep butterfly is displayed adjacent to the Mar/Jun andJun/Sep calendar spreads. This display, in addition to allowing a traderto view market information for individual legs of a butterfly, alsoallows the trader to view market information for the two-leg spreadsthat form the butterfly.

The trading screen also displays information for a condor. For thecondor, the front month is March 2001, the middle months are June 2001and September 2001, and the far month is December 2001. Priceinformation for the condor is displayed in a Condor Price column 114,and quantity information for the condor is displayed in a CondorQuantity column 116. The Condor price and quantity columns 114, 116 arevertically centered between the rows that comprise the condor, therebyallowing a trader to easily see the condor information as it relates tothe other spreads and outright information.

Similar to the butterfly, the condor can be a combination of twodifferent two-leg spreads. The condor depicted in FIG. 2 has March 2001,June 2001, September 2001 and December 2001 legs. Therefore, it can bemade from a combination of Mar/Jun and Sep/Dec two-leg spreads. Thedisplay format depicted in FIG. 2 advantageously allows a trader to viewthe condor near the two-leg spreads that also form the condor. Thus, thetrader can simultaneously view the markets for the condor, for itsindividual legs, and for the two-leg spreads that form the condor.

FIG. 2B is a screenshot of the trading screen of FIG. 2A displayingmultiple condor spreads. As shown in FIG. 2B, the Contract column 100includes identifiers for ten different contracts. Of course, it couldalso display identifiers for tradeable objects other than contracts.Outright pricing information for the ten contacts is displayed in theOutright Price column 102, and outright quantity information for the tencontracts is displayed in the Outright Quantity column 104. Using theten contracts, nine different calendar spreads are computed. Pricinginformation for the calendar spreads is displayed in the Calendar Pricecolumn 106, while quantity information for the calendar spreads isdisplayed in the Calendar Quantity column 108. As with FIG. 2B, theprice and quantity information for the calendar spreads is centered withrespect to the identifiers for the contacts that comprise the legs ofthe spreads.

FIG. 2B displays trading information for eight different butterflyspreads. Price information for the butterfly spreads is displayed in aButterfly Price column 110. Quantity information for the butterfly isdisplayed in the Butterfly Quantity column 112. The price and quantityinformation for each butterfly spread is centered with respect to thecontracts comprising its legs. Seven different condors are displayed inFIG. 2B. Pricing information for the condors is displayed in the CondorPrice column 114, and quantity information for the condors is displayedin the Condor Quantity column 116. The price and quantity informationfor each condor is centered with respect to the identifiers of itscorresponding legs displayed in the Contract column 100.

FIG. 2C is a screenshot of an alternate format for displaying spreads ina trading screen that displays only pricing information. The tradingscreen depicted in FIG. 2C displays information about various tradeableobjects; however, instead of displaying both pricing information andquantity information, it displays only pricing information. FIG. 2Cincludes a Contract column 100, which displays identifiers for variouscontracts. Of course, it could also display identifiers for othertradeable objects.

The Outright Price column 102 displays outright pricing information forthe tradeable objects identifies by the identifiers displayed in theContract column 100. The Calendar Price column 106 displays pricinginformation for various calendar spreads. The Butterfly Price column 110displays prices for butterfly spreads, and the Condor Price column 114displays prices for condor spreads. The pricing information for thecalendar, butterfly and condor spreads is displayed centered withrespect to the identifiers of the legs of the spreads.

FIG. 2D is a screen shot of an alternate format for displaying spreadsin a trading screen that displays ask and bid prices in adjacentcolumns. Similar to FIG. 2C, FIG. 2D displays only pricing informationfor tradeable objects and spreads. However, FIG. 2D displays the bid andask pricing information in adjacent columns instead of displaying theinformation in the same column. The Contract column 100 displaysidentifiers for multiple tradeable objects.

An Outright Ask Price column 120 displays outright ask prices for atradeable objects, and an Outright Bid Price column 122 displaysoutright bid prices for a tradeable object. A Calendar Ask Price column124 displays ask prices for various calendar spreads, while a CalendarBid Price column 126 displays bid prices for the calendar spreads. ACondor Ask Price column 128 displays ask prices for condor spreads, anda Condor Bid Price column 130 displays bid prices for the condorspreads. The bid and ask prices for the various spreads displayed by thetrading screen are centered with respect to the identifiers for the legsof the respective spreads.

FIG. 2E is a screenshot of an alternate format for displaying spreads ina trading screen that displays ask information and bid information inadjacent columns. As shown in FIG. 2E, ask price and ask quantityinformation for a tradeable object or spread is displayed in the samecolumn. Similarly, bid price and bid quantity information for atradeable object or spread is displayed in the same column. Thisconfiguration is different than the displays depicted in FIGS. 2A-2B,which displayed the corresponding price and quantity information inadjacent columns.

The Contract column 100 displays identifiers for tradeable objects. AnOutright Ask column 138 displays outright ask prices and ask quantitiesfor the tradeable objects. An Outright Bid Column 140 displays outrightbid prices and bid quantities for the tradeable objects. A Calendar Askcolumn 142 displays ask price and ask quantity for various calendarspreads, while a Calendar Bid column 144 displays bid prices and bidquantities for the calendar spreads. The pricing and quantityinformation is displayed centered with respect to the identifiers forthe legs of the spread.

A Butterfly Ask column 146 displays ask price and ask quantityinformation for butterfly spreads, and a Butterfly Bid column 148displays bid price and bid quantity information for the butterflyspreads. A Condor Ask column 150 displays ask prices and ask quantitiesfor condor spreads, while a Condor Bid column 152 displays bid pricesand bid quantities for the condor spreads. The butterfly and condorpricing and quantity information is displayed centered with respect tothe legs of the spread. Other variations to this display are possible,for example, displaying the bid information above the ask information.

FIG. 2F is a screenshot of an alternate format for displaying spreadsand market-related information in a trading screen that supports clicktrading. FIG. 2F is an alternate version of the trading screen of FIG.2, which has been modified to support click trading. However, it shouldbe understood that any of the trading screens described herein may bemodified in a similar manner to support click trading.

As shown in FIG. 2F, a trading box, which allows a trader to place atrade simply by clicking on one of the boxes in the display, is locatedadjacent to the top of the display. However, the trading box may beplaced at other locations on the display. The trading box includes aQuantity Box 156, which can be used to select a quantity. The quantitymay be adjusted, for example, by using the arrows adjacent to theQuantity Box 156 or by typing a new entry into the quantity Box 156. Ofcourse, other methods may also be used to enter data into a display box,such as the Quantity Box 156 or other various display boxes.

A Click Offset Field 158 can be used to set a maximum number of ticksthat the price can move from the last traded price, thereby preventing auser from sending an order that is too far away from the last tradedprice. A Click +/− Field 160 can be used to set the maximum number ofticks the price can move from the clicked price. This can allow a userto more efficiently trade in a fast moving market. The Click OffsetField 158 and Click +/− Field 160 features are generally mutuallyexclusive. A user would typically only use one of the two features at atime but may switch between the two features. Click and Dime optionbuttons can be selected depending on the type of mouse utilized by auser. For a three-button mouse, these options are generally disabled,such as by being grayed out. For a two-button mouse, a user can selectedbetween dime and click and would generally select click. A Dime +/− 162may be used to set a dime offset when the dime option button isselected. Of course, this description of click trading features ismerely exemplary in nature, and other implementations may use additionalor fewer features.

Using the fields illustrated in FIG. 2F, a user may place a trade bysetting the values in these fields and then clicking on a field in thedisplay, such as a bid price or ask price field. Depending on themarket, the order may be matched quickly, or it may remain pending untilthe market moves such that the order can be filled. While the order ispending, the user may obtain additional information about the order byselecting a dialog box. Using the dialog box, the user may modify theorder, such as by changing it price, quantity or other attributes.Alternatively, a user may cancel the order entirely.

As previously described, a user can configure the trading screen. Forexample, the user can select the tradeable object, such as a contract.The tradeable object can be associated with one or more time periods,such as months. The user can also select one or more different spreadsto be displayed on the trading screen. It is not necessary, however,that a user makes all of these selections.

In an alternate embodiment, default options could be set for the tradingscreen, such as preprogrammed default options or default options set bythe user. The user could then select a tradeable object. In response tothe selection, the trading screen could display different spreadsaccording to the default options. For example, the trading screen couldautomatically display the two-leg, butterfly and condor spreads. Oncethe default options are displayed, the user could then reconfigure thetrading screen to display different options, such as removing some orall of the spreads.

Additionally, the user could select from different configurations of thetrading screen. For example, the user could select an initialconfiguration of the trading screen, such as one of the configurationsdescribed in FIGS. 2A-2F. Then, the user could switch to anotherconfiguration of the trading screen, such as one of the otherconfigurations described in FIGS. 2A-2F. Of course, the user could alsoselect other options, which may also change the configuration of thetrading screen. In response to the user's selections, the newconfiguration of the trading screen may be displayed. The transition tothe new trading screen configuration can be seamless, in order to allowthe user to continually interact with the trading screen.

In addition to changing the configuration of the trading screen, thedata outputted by the trading screen can also be configured to displaydifferent types of pricing and quantity information. For example, thetrading screen can output direct prices, which can be provided by theexchange. The direct prices correspond to the actual tradeable objectstraded on the exchange. As previously discussed, the direct prices canbe for single tradeable objects, such as stocks, options, contacts,futures or other tradeable commodities. Additionally, if the exchangesupports direct trading of spreads, the direct prices can be forspreads.

In another configuration, the trading screen can be configured todisplay implied prices, which are described in more detail below. Theuser can specify one or more spreads, and the implied prices for thespreads can be computed. As previously described, an implied price canbe computed based on the various direct prices that comprise the legs ofthe spread. In addition to computing and displaying implied prices,implied-on-implied prices may also be computed and displayed. Whileimplied prices are computed using a combination of direct prices,implied-on-implied are computed using one or more implied prices. Thus,an implied-on-implied price can be computed using only implied prices,or it may be computed using a combination of implied and direct prices.Of course, the trading screen could display direct prices for somespreads while displaying implied prices, implied-on-implied prices, or acombination implied and implied-on-implied prices for other spreads.

In yet another configuration, the trading screen can be configured todisplay the more favorable of the implied prices or direct prices.According to this configuration, the implied prices are calculated andcompared to any available direct prices. If the implied prices providemore favorable price information, such as the implied bid price ishigher than the direct bid price or the implied ask price is lower thanthe direct ask price, then the implied prices would be displayed.However, if the direct prices are more favorable then they aredisplayed. If direct prices are not available such as the exchange doesnot provide price information but it might match orders anyway, then theimplied prices are displayed.

III. Displaying Implied Prices

Sometimes, an exchange does not provide all of the market information tothe trader, which is often needed to make desirable trades. For example,an exchange might provide prices in the outright legs of the spread, butnot the actual spread price (or vice-versa). However, this can misleadthe trader because even though the exchange does not always provide allof the market information (e.g., not providing implied information) tothe trader, the exchange may still allow the trader to trade the spreadand the matching engine at the exchange would complete the spread. Tomake more desirable trades, however, it is desirable to see a completepicture of all the market information (e.g., direct and/or impliedinformation). To do this, the present embodiments use the marketinformation received from an exchange and automatically compute impliedprices and quantities.

Displaying implied prices can advantageously allow a trader to view theimplied market for the spread. While a direct market may not exist forthe spread, the trader can still view the implied market for the spread.However, the trader could also choose to view the implied market for aspread when a direct market for the spread also exists. Changes in thedirect prices of the legs comprising the spread can cause acorresponding change in the implied price of the spread. The impliedprices can be displayed by the trading screen and viewed by the user.

Although a trader could view the direct prices of the legs, oftentimesthe trader would be unable to continually recompute the implied pricesand quantities of the spread based on the direct prices quickly enoughto see market trends. The trading software could compute the impliedprices and quantities, and it could display that information on thetrading screen. Then, the trader would be able view the implied pricesand quantities in a much more useful manner, and the trader would bemore likely to view market trends for the spread or arbitrageopportunities, for example.

The implied prices could be differentiated from the direct prices, forexample, by displaying the implied and direct prices using differentcolors. For example, the text for the prices could be displayed indifferent colors, or the backgrounds or borders for the displays couldbe displayed using different colors. This can allow the trader toquickly and easily determine whether the trader is viewing impliedprices or direct prices. The quantity information can be similarlydifferentiated.

FIG. 3 is a flowchart of a preferred process to calculate and displayimplied price and quantities for a spread, such as can be performed bytrading software. At Step 190, the trading software receives directprice and quantity information for individual legs of a spread. Then, atStep 192, the trading software computes the implied prices andquantities for the spread using the direct price and quantityinformation for the individual legs. This can be done, for example,using the formulas described below. Then, at Step 194, the tradingsoftware displays the implied prices and quantities on a trading screen.

The trading software can switch between displaying direct price andquantity information and displaying implied price and quantityinformation. FIG. 4 is a flowchart of a preferred process to switch fromdisplaying direct price and quantity information for a spread todisplaying implied price and quantity information for the spread. AtStep 200, the trading software displays direct price and quantityinformation for the spread, such as by outputting the direct price andquantity information on the trading screen. Then, at Step 202, tradingsoftware receives an input from a user to display implied price andquantity information. At Step 204, the trading software displays theimplied price and quantity information for the spread.

FIG. 5 is a flowchart of a preferred process to switch from displayingimplied price and quantity information for a spread to displaying directprice and quantity information for the spread. The trading softwaredisplays implied price and quantity information for the spread, as shownat Step 250. Then, at Step 252, the trading software receives an inputfrom a user to display direct price and quantity information for thespread. Next, at Step 254, the trading software displays the directprice and quantity information for the spread.

In addition to switching between direct and implied displays based on auser's selection, the trading program can automatically switch betweenthe two different views based on other criteria. For example, thetrading program could determine whether the direct or implied marketoffered a more favorable price for a spread, and then it could eitherdisplay the better of direct or implied market for the spread. Moreover,both direct and implied information may be displayed simultaneously.

FIG. 6 is a flowchart of a preferred process to responsively switchbetween displaying the direct and implied markets for a spread based onthe prices in each market. At Step 300, the trading software receivesdirect price and quantity information for a spread. At Step 302, thetrading software receives direct price and quantity information for eachleg of the spread. As previously described, the trading software mayreceive a market information feed from a trading exchange. Thus, thetrading software may receive only some or all of the direct pricing andquantity information for the spread and for the spreads legs in acontinual and contemporaneous manner.

At Step 304, the trading software computes an implied price and quantityfor the spread based on the direct prices and quantities for theindividual legs. The implied price and quantities that are computed maybe used to calculate more accurate price information to be displayed, orthey may be used to fill in missing price information that the exchangedid not provide. Next, at Step 306, the trading software determines thatthe implied price is more favorable than the direct price. For example,the trader may be interested in buying the spread, and, therefore, a lowprice would be favorable. However, if the trader wants to sell thespread, then a high price would be favorable. Of course, other factorscould also be used to determine whether the direct or implied price ismore favorable. At Step 308, the trading software displays the morefavorable implied price and quantity for the spread.

In one embodiment, the computation of the implied price and quantityinformation can be continually computed, based on updated direct pricesand quantities for the individual legs. The trading software can alsoreceive updated direct prices and quantities for the spread, which canallow the trading software to continually reevaluate whether the director implied price is more favorable. When the trading software determinesthat the implied price is no longer more favorable than the directprice, the trading software can switch from displaying the implied priceinformation to displaying the direct price information.

The trading screen can also support additional functionality. In oneexample of additional functionality, a user could place trades directlyoff the trading screen. For example, the user could select one of theboxes corresponding to one of the bid or ask prices, such as by using aninput device to select one of the boxes. For example, by selecting anask price, the user could place a buy order at the ask price. Similarly,by selecting a bid price, the user could place a sell order at the bidprice. The user could trade the different spreads or outright objects bysimply selecting the corresponding bid or ask boxes.

Once the user makes the selection, such as by clicking on one of theboxes with a mouse, an order could be automatically placed for thecorresponding tradeable object. The trading screen can be configured totrade a predetermined quantity of the user's selection, thereby allowingquick entering of orders. The user could manually adjust thepredetermined quantity. Alternatively, the user could be prompted for aquantity after making the selection.

In another example of additional functionality, the user can configurethe trading screen to display spreads specified by the user. The tradingscreen can display direct prices for the spreads, if they are traded onthe exchange, and the trading screen can also display the impliedprices. The trading screen can switch between the direct and impliedprices, such as by displaying the most advantageous prices. Then, theuser can place trades by simply clicking on the desired tradeableobject.

Additionally, the user could dynamically reconfigure the tradingscreen's display, such as by selecting a new tradeable object. The newtradeable object could be in addition to the currently displayedtradeable objects, or it could replace one of the currently displayedtradeable objects. This could be done, for example, by “dragging anddropping” a new tradeable object into the trading screen. Dragging anddropping provides a method for a user of a computer display toreconfigure the layout of the display, such as by using a mouse or otherinput device to select and move an object displayed on the computerscreen.

Once the user adds a new tradeable object to the trading screen, theoutright and spread information can be recomputed using the newtradeable object. For example, the user may replace a currentlydisplayed March corn contract with a February corn contact. The tradingscreen would then display the February corn contact in the Contractcolumn 100 instead of displaying the March corn contract. The outrightinformation for the February corn contract would be displayed in theOutright price column 102 and the Outright quantity column 104, and thisinformation would replace the information for the March corn contract.

The spreads are also recalculated using the February corn contact inplace of the March corn contact. Thus, any spread leg that used theMarch corn contract would be replaced by the February corn contact. Thebid and ask prices as well as the bid and ask quantities for the spreadswould also be updated to reflect the change. Thus, by changing a singleentry in the Contract column 100, the trading screen would automaticallyrecompute and display updated values corresponding to the changedtradeable object. This can advantageously allow a trader toexpeditiously reconfigure the trading screen and to quickly view theupdated information. Once updated, the user could places trades for theadded tradeable object or for the readjusted spreads.

IV. Computing Direct and Implied Prices

Exchanges can support trading spreads as an atomic unit such that aspread will only be completed if all the orders in the legs, whichcorrespond to the spread, are filled. This can greatly reduce the risk,for example, of filling one leg but not filling the other leg. Anexchange can create a spread and support a market for that spread,thereby allowing traders to trade that spread as an atomic unit. Forexample, an exchange could define a spread as a buy February S&P 500option and a sell March S&P 500 option. Traders would then be able tosee market prices for the spread as an atomic unit and would also beable to buy and sell the spread as an atomic unit.

Thus, a trader could place an order for the spread. The order would besent to the exchange, and the exchange would handle completing each legof the spread. If the legs could be traded at the order price, then thespread order could be completed. If, however, all the legs of the spreadcould not be traded, then the exchange would not complete the spread. Asmentioned above, by trading the spread as an atomic unit, traders areable to avoid legging risk, such as failing to get a fill on allnecessary legs such that the complete spread position is properlyhedged. Also, trading spreads in this manner can guarantee that, if thespread order executes, it will executed at the order price.

In addition to supporting spreads specified by the exchange, someexchanges, such as the London International Financial Futures andOptions Exchange (“LIFFE”), support dynamically created spreads. Onthese exchanges, a trader is not limited to trading only spreadsconfigured by the exchange. Rather, the trader can dynamically create aspread. Once created, traders on the exchange can trade the dynamicallycreated spread.

The exchange can additionally support atomic trading of the dynamicallycreated spread. Therefore, the traders can buy and sell the spread as anatomic unit, instead of having to separately execute each leg of thespread. After placing the order, the exchange handles filling the legsof the orders. If all the legs can be completed, then the spread orderis completed at the specified order price. The prices for spreads tradedas an atomic unit are generally termed direct prices.

In addition to trading spreads as an atomic unit, spreads can be tradedindividually in the outright markets, for example, by separately tradingeach leg of the spread. Trading spreads individually can allow tradersto buy and sell spreads that are not supported by an exchange. Forexample, an exchange may not support spreads at all, or the exchange maynot support a particular spread. By trading the legs individually, wherethe exchange does not support the spread, the trader can neverthelesstrade the spread.

Trading spread legs separately, however, can create a delay incompleting a purchase or sale of the spread. Since the trades of theindividual legs are generally not executed simultaneously, some legs maytrade faster than others. Thus, a trader may experience a delay incompleting all the legs of the spread. The delay can also affect thepurchase or sale price of the spread, because the prices of theindividual legs may change before the purchase or sale of the spread canbe completed.

Also, trading spreads in this manner does not guarantee the completionof each leg of the spread. For example, a trader could begin trading aspread by executing the first leg of the spread. Once the traderattempts to trade the second leg of the spread, however, the trader maynot be able to successfully complete that leg. For instance, the marketmay have moved away from the trader's price before that leg executed.The trader would then be forced to trade that leg at a different, andpossible less advantageous price, or would be left with an incompletespread.

When trading the individual legs of the spread separately, the price ofthe spread may be computed based on the prices of the individual legs.This price is typically termed an implied price. The implied price isgenerally in contrast to the direct price, which is used when the spreadis traded as an atomic unit.

The implied prices can be can be computed based on the prices of theindividual legs. As with other tradeable objects, both a bid price andan ask price can be computed for the spread. The bid price is typicallythe price at which a buyer is offering to purchase the spread, and theask price is typically the price at which a seller is offering to sellthe spread. Thus, the bid and ask prices for a spread are computed bycombining the bid and ask prices for the individual legs.

For example, a butterfly spread comprises purchasing both front and farmonths and selling a middle month. The ask price for the butterflyspread can then be computed using the ask price for the front and farmonths and the bid price for the middle month. Once computed, the askprice would reflect the price at which a seller would sell the spread.Conversely, the bid price for the spread would use the bid prices forthe front and far months and the ask price for the middle month. The bidprice would reflect the price at which a buyer could purchase thespread.

In addition to computing the implied bid and ask prices, the impliedquantities can also be computed. The implied quantities represent thenumber of implied spreads available at the bid and ask prices. Thesequantities, of course, depend on the available quantities of theindividual legs. The following formulas may be used to compute theimplied bid and ask prices and the implied quantities of a butterflyspread.

Butterfly Price and Quantity FormulasimpliedAskPrice=leg1AskPrice−2*leg2BidPrice+leg3AskPriceimpliedAskQty=min(min(leg1AskQty,leg2BidQty/2),leg3AskQty)impliedBidPrice=leg1BidPrice−2*leg2AskPrice+leg3BidPriceimpliedBidQty=min(min(leg1BidQty,leg2AskQty/2),leg3BidQty)

A condor spread comprises purchasing a front and far month and sellingtwo different middle months. The bid and ask prices of a condor spread,therefore, are based on the bid and ask prices of the individual legs.Similarly, the implied bid and ask quantities are based on the availablequantities of the individual legs. The formulas listed below may be usedto compute the implied bid and ask prices and the available quantitiesof a condor.

Condor Price and Quantity FormulasimpliedAskPrice=leg1AskPrice−leg2BidPrice−leg3BidPrice+leg4AskPriceimpliedAskQty=min(min(min(leg1AskQty,leg2BidQty),leg3BidQty),leg4AskQty)impliedBidPrice=leg1BidPrice−leg2AskPrice−leg3AskPrice+leg4BidPriceimpliedBidQty=min(min(min(leg1BidQty,leg2AskQty),leg3AskQty),leg4BidQty)

Of course, the preceding formulas can be modified for use with two-legspreads or for use with spreads having more than four legs.

Some exchanges that support spread trading, such as LIFFE, do notnecessarily calculate some or all implied prices of spreads that can bedisplayed to traders. While traders can view direct prices for thespreads, traders would additionally benefit from having implied pricescalculated automatically through their software. They would furtherbenefit by having an interface that allowed easy comparisons to be madebetween direct and implied prices for any combination of months thatmake up their butterfly or condor spread.

For example, a trader could dynamically create a spread on an exchangesuch as LIFFE. After creating the spread, it would be available on theexchange and could be traded in atomic units. However, a newly createdspread is unlikely to have a heavy trading volume. Traders may take timebefore they learn about the spread and begin to trade the spread.Therefore, the initial trading volume might be small. Additionally, thespread may be an uncommon spread or one otherwise unlikely to acquire alarge market and thus a large trading volume.

While the direct market for these spreads may be sparse, the impliedmarket may have a much higher volume. For example, the legs of a spreadmay have a higher volume, and they could be readily traded individually.By trading the spread based on implied prices, such as by individuallytrading the legs, a trader can find a more liquid market for the spread.Therefore, it might be advantageous to view the implied marketinformation for the spread in addition to the direct market information.And, when trading these markets, the trader would benefit by havingsoftware that would allow for automatic calculation and display ofcomplex strategies, such as butterflies and condors, for any number oftime period or strike price combinations.

It should be understood that the programs, processes, methods andapparatus described herein are not related or limited to any particulartype of computer or network apparatus (hardware or software), unlessindicated otherwise. Various types of general purpose or specializedcomputer apparatus may be used with or perform operations in accordancewith the teachings described herein. While various elements of thepreferred embodiments have been described as being implemented insoftware, in other embodiments hardware or firmware implementations mayalternatively be used, and vice-versa.

In view of the wide variety of embodiments to which the principles ofthe present invention can be applied, it should be understood that theillustrated embodiments are exemplary only, and should not be taken aslimiting the scope of the present invention. For example, the steps ofthe flow diagrams may be taken in sequences other than those described,and more, fewer or other elements may be used in the block diagrams. Theclaims should not be read as limited to the described order or elementsunless stated to that effect. In addition, use of the term “means” inany claim is intended to invoke 35 U.S.C. §112, paragraph 6, and anyclaim without the word “means” is not so intended. Therefore, allembodiments that come within the scope and spirit of the followingclaims and equivalents thereto are claimed as the invention.

I claim:
 1. A method including: generating by a computing device a firstarea including a first highest bid price, a first lowest ask price, anda first identifier associated with a first tradeable object; generatingby the computing device a second area including a second highest bidprice, a second lowest ask price, and a second identifier associatedwith a second tradeable object; and generating by the computing device afirst spread area including a first spread highest bid price and a firstspread lowest ask price, wherein the first spread highest bid price andthe first spread lowest ask price are associated with a first type ofspread between the first tradeable object and the second tradeableobject; displaying by the computing device the first area, the secondarea, and the first spread area, wherein the second area is displayedsubstantially adjacent to the first area along a first axis, wherein thefirst spread area is displayed along a second axis, wherein the secondaxis is parallel and substantially adjacent to the first axis, whereinthe first spread area is substantially centered with respect to thefirst area and the second area to correlate the first type of spread tothe first tradeable object and the second tradeable object; providing bythe computing device a first order entry region configured to receive acommand to initiate a trade order for the first tradeable object,wherein the first order entry region is provided in relation to thefirst area, wherein the trade order for the first tradeable objectincludes a price corresponding to one of the first highest bid price andthe first lowest ask price; providing by the computing device a secondorder entry region configured to receive a command to initiate a tradeorder for the second tradeable object, wherein the second order entryregion is provided in relation to the second area, wherein the tradeorder for the second tradeable object includes a price corresponding toone of the second highest bid price and the second lowest ask price; andproviding by the computing device a first spread order entry regionconfigured to receive a command to initiate a trade order for the firsttype of spread, wherein the first spread order entry region is providedin relation to the first spread area, wherein the trade order for thefirst type of spread includes a price corresponding to one of the firstspread highest bid price and the first spread lowest ask price.
 2. Themethod of claim 1, further including: receiving by the computing devicethe first spread highest bid price and the first spread lowest ask pricefrom one of a gateway and an electronic exchange.
 3. The method of claim1, further including: calculating by the computing device the firstspread highest bid price and the first spread lowest ask price based onthe first highest bid price, the first lowest ask price, the secondhighest bid price, and the second lowest ask price.
 4. The method ofclaim 1, wherein the first axis is one of vertical and horizontal. 5.The method of claim 1, wherein the first highest bid price and the firstlowest ask price are arranged one of vertically and horizontally in thefirst area, wherein the second highest bid price and the second lowestask price are arranged one of vertically and horizontally in the secondarea, wherein the first spread highest bid price and the first spreadlowest ask price are arranged one of vertically and horizontally in thefirst spread area.
 6. The method of claim 1, wherein the first spreadarea includes a first spread identifier for the first type of spread. 7.The method of claim 1, wherein the first area includes a first highestbid quantity and a first lowest ask quantity, wherein the second areaincludes a second highest bid quantity and a second lowest ask quantity,wherein the first spread area includes a first spread highest bidquantity and a first spread lowest ask quantity.
 8. The method of claim1, wherein the first area includes the first order entry region, whereinthe second area includes the second order entry region, wherein thefirst spread area includes the first spread order entry region.
 9. Themethod of claim 1, wherein the first order entry region includes a firstlocation configured to receive the command to initiate the trade orderfor the first tradeable object at the first highest bid price, whereinthe first order entry region includes a second location configured toreceive the command to initiate the trade order for the first tradeableobject at the first lowest ask price, wherein the second order entryregion includes a first location configured to receive the command toinitiate the trade order for the second tradeable object at the secondhighest bid price, wherein the second order entry region includes asecond location configured to receive the command to initiate the tradeorder for the second tradeable object at the second lowest ask price,wherein the first spread order entry region includes a first locationconfigured to receive the command to initiate the trade order for thefirst type of spread at the first spread highest bid price, wherein thefirst spread order entry region includes a second location configured toreceive the command to initiate the trade order for the first type ofspread at the first spread lowest ask price.
 10. The method of claim 1,further including: generating by the computing device a third areaincluding a third highest bid price, a third lowest ask price, and athird identifier associated with a third tradeable object; generating bythe computing device a second spread area including a second spreadhighest bid price and a second spread lowest ask price, wherein thesecond spread highest bid price and the second spread lowest ask priceare associated with a second type of spread between the first tradeableobject, the second tradeable object, and the third tradeable object;displaying by the computing device the third area, wherein the thirdarea is displayed substantially adjacent to the second area along thefirst axis; and displaying by the computing device the second spreadarea, wherein the second spread area is displayed along a third axis,wherein the third axis is parallel and substantially adjacent to thesecond axis, wherein the second spread area is substantially centeredwith respect to the first area, the second area, and the third area tocorrelate the second type of spread to the first tradeable object, thesecond tradeable object, and the third tradeable object.
 11. The methodof claim 10, further including: receiving by the computing device thesecond spread highest bid price and the second spread lowest ask pricefrom one of a gateway and an electronic exchange.
 12. The method ofclaim 10, further including: calculating by the computing device thesecond spread highest bid price and the second spread lowest ask pricebased on the first highest bid price, the first lowest ask price, thesecond highest bid price, the second lowest ask price, the third highestbid price, and the third lowest ask price.
 13. The method of claim 10,wherein the second spread highest bid price and the second spread lowestask price are arranged one of vertically and horizontally in the secondspread area.
 14. The method of claim 10, wherein the second spread areaincludes a second spread identifier for the second type of spread. 15.The method of claim 10, wherein the second spread area includes a secondspread highest bid quantity and a second spread lowest ask quantity. 16.The method of claim 10, further including: providing by the computingdevice a second spread order entry region configured to receive acommand to initiate a trade order for the second type of spread, whereinthe second spread order entry region is provided in relation to thesecond spread area, wherein the trade order for the second type ofspread includes a price corresponding to one of the second spreadhighest bid price and the second spread lowest ask price.
 17. The methodof claim 16, wherein the second spread area includes the second spreadorder entry region.
 18. The method of claim 16, wherein the secondspread order entry region includes a first location configured toreceive the command to initiate the trade order for the second type ofspread at the second spread highest bid price, wherein the second spreadorder entry region includes a second location configured to receive thecommand to initiate the trade order for the second type of spread at thesecond spread lowest ask price.
 19. The method of claim 10, furtherincluding: generating by the computing device a fourth area including afourth highest bid price, a fourth lowest ask price, and a fourthidentifier associated with a fourth tradeable object; generating by thecomputing device a third spread area including a third spread highestbid price and a third spread lowest ask price, wherein the third spreadhighest bid price and the third spread lowest ask price are associatedwith a third type of spread between the first tradeable object, thesecond tradeable object, the third tradeable object, and the fourthtradeable object; displaying by the computing device the fourth area,wherein the fourth area is displayed substantially adjacent to the thirdarea along the first axis; and displaying by the computing device thethird spread area, wherein the third spread area is displayed along afourth axis, wherein the fourth axis is parallel and substantiallyadjacent to the third axis, wherein the third spread area issubstantially centered with respect to the first area, the second area,the third area, and the fourth area to correlate the third type ofspread to the first tradeable object, the second tradeable object, thethird tradeable object, and the fourth tradeable object.
 20. The methodof claim 19, further including: receiving by the computing device thethird spread highest bid price and the third spread lowest ask pricefrom one of a gateway and an electronic exchange.
 21. The method ofclaim 19, further including: calculating by the computing device thethird spread highest bid price and the third spread lowest ask pricebased on the first highest bid price, the first lowest ask price, thesecond highest bid price, the second lowest ask price, the third highestbid price, the third lowest ask price, the fourth highest bid price, andthe fourth lowest ask price.
 22. The method of claim 19, wherein thethird spread highest bid price and the third spread lowest ask price arearranged one of vertically and horizontally in the third spread area.23. The method of claim 19, wherein the third spread area includes athird spread identifier for the third type of spread.
 24. The method ofclaim 19, wherein the third spread area includes a third spread highestbid quantity and a third spread lowest ask quantity.
 25. The method ofclaim 19, further including: providing by the computing device a thirdspread order entry region configured to receive a command to initiate atrade order for the third type of spread, wherein the third spread orderentry region is provided in relation to the third spread area, whereinthe trade order for the third type of spread includes a pricecorresponding to one of the third spread highest bid price and the thirdspread lowest ask price.
 26. The method of claim 25, wherein the thirdspread area includes the third spread order entry region.
 27. The methodof claim 25, wherein the third spread order entry region includes afirst location configured to receive the command to initiate the tradeorder for the third type of spread at the third spread highest bidprice, wherein the third spread order entry region includes a secondlocation configured to receive the command to initiate the trade orderfor the third type of spread at the third spread lowest ask price.